ScheduleCG: ScheduleCG (2024)

Who files this form

Complete 2024 Schedule CG if you are not reporting a long-term capital gain on your 2024 Wisconsin Schedule WD because you reinvested the gain and are claiming a deferral.

The deferral is available to individuals, including individual partners in partnerships, LLC members, and shareholders of tax-option (S) corporations. To qualify, you must invest all of the long-term gain in a qualified Wisconsin business within 180 days after selling the asset.

What you'll need

Have the following information ready to complete Schedule CG:

• Your name and Social Security number, plus your spouse’s information if filing jointly.
• The date and description of the asset sold, and the amount of long-term capital gain.
• The date and type of investment in the qualified Wisconsin business.
• The business’s name and federal employer identification number (FEIN).
• The amount of gain invested and the amount you are deferring.

Include a copy of the completed Schedule CG with your Wisconsin Form 1 or 1NPR. Claim the deferral when completing Wisconsin Schedule WD.

How to file

Complete Schedule CG and attach a copy to your Wisconsin Form 1 or 1NPR for the tax year in which you claim the deferral. Claim the deferral on Wisconsin Schedule WD.

On Schedule CG, enter the asset sale and investment details, the qualified business’s name and FEIN, and the amounts invested and deferred. For line 8, subtract the deferred gain on line 7 from the investment amount on line 6.

The supplied text does not give a mailing address or e-filing directions.

Common mistakes

• Investing too late. The investment date on line 4 must be within 180 days of the sale date on line 1. Otherwise, you do not qualify for the deferral.
• Forgetting the attachment. A copy of Schedule CG must be included with your Wisconsin income tax return.
• Treating the registered-business list as proof of eligibility. The form warns that information provided by registered businesses has not been reviewed to determine eligibility for this deferral.
• Overlooking the basis reduction. Subtract the deferred gain from the investment amount. The reduced basis will result in a larger Wisconsin gain or smaller Wisconsin loss when the investment is later sold or otherwise disposed of.
• Assuming a later gain exclusion covers the deferred gain. The possible exclusion described for qualifying investments held for five years does not include the deferred gain.

Questions people ask

What counts as a long-term capital gain?

It is gain from selling a capital asset held for more than one year that is treated as a long-term gain under the Internal Revenue Code.

Do I have to reinvest all of the gain?

Yes. The procedures require you to invest all of the long-term gain in a qualified Wisconsin business within 180 days after the sale that generated the gain.

What is a qualified Wisconsin business?

The form defines it as a business certified by the Wisconsin Economic Development Corporation or registered with the Wisconsin Department of Revenue. A business must register with the department each year it wants to be considered qualified. To register, it must have at least two full-time employees, at least 50% of its payroll compensation paid in Wisconsin, and at least 50% of the value of its owned or rented real and tangible personal property used in Wisconsin.

Can gain from a later sale of the investment be excluded?

Possibly. If you hold the investment for five years and meet certain conditions, you may be able to exclude gain from its sale or disposition. The business must have been certified or registered for the investment year and two of the next four years. The exclusion does not include the deferred gain. The form refers you to Schedule QI for more information.

Where can I get help?

Email DORIncome@wisconsin.gov or call (608) 266-2772. For help using TTY equipment, call 711 or, if there is no answer, (800) 947-3529.

Official sources

• https://www.revenue.wi.gov/TaxForms2024/2024-ScheduleCG.pdf